Qualcomm-NXP in China

We think this is a win-win deal between NXP and Qualcomm, providing more upside for Qualcomm. On the one hand, Qualcomm is seizing the burgeoning

automotive market and IoT (Internet of Things), which is expected to bring economic scale and client loyalty in the near future. On the other hand, NXP has achieved its long-term goal of selling itself at a good price. In addition, the transaction fits within China’s goal to achieve significant present in “strategic” industries, which includes semiconductors.Qualcomm-NXP